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1. |
If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause ? |
A. | an increase in the number of firms in the market but no increase in the price of the good |
B. | an increase the price of the good and an increase in the number of firms in the market |
C. | an increase the price of the good but no increase in the number of firms in the market |
D. | no impact on either the price of the good or the number of firms in the market |
Answer» B. an increase the price of the good and an increase in the number of firms in the market | |